Montenegro’s budget revenue reached €1.72 billion in the first seven months of 2026, exceeding government projections while capital expenditure increased significantly, according to Finance Ministry data.Revenue between January and July was €137.2 million, or 8.7%, higher than in the same period of 2025 and €28.4 million above plan. Montenegro recorded a €25.4 million current spending surplus during the seven-month period, including €24.6 million in July alone.
Tax collection records broad-based growth
The main tax categories all contributed to the increase. Personal income tax, corporate profit tax, value-added tax, excise duties and social contributions together generated more than €100 million in additional revenue compared with the first seven months of last year. Social security contributions reached €250.5 million, rising €31.4 million, or 14.4%, year on year. Collection was also €8.9 million above plan, reflecting higher employment, wages and a broader taxable labour base.
Revenue collection remained strong in July, when Montenegro recorded €279.5 million, an increase of €22.7 million, or 8.8%, compared with July 2025. The monthly result was €1.7 million above plan. July is particularly important for public revenue because of the increased economic activity associated with Montenegro’s peak summer tourism season.
Capital expenditure accelerates
Capital expenditure amounted to €169.3 million through July, almost 30% more than in the corresponding period of 2025. The acceleration was especially pronounced in July, when capital spending reached €54.4 million. That was €33.3 million, or 158.2%, higher than in July last year and €27.5 million, or 102.3%, above the monthly plan.
Of the capital expenditure executed during the first seven months, €103.41 million was related to projects classified under the formal capital budget. The stronger execution reflects faster implementation of projects that had previously progressed more slowly and increases spending through transport, municipal and other infrastructure projects.
Social protection spending also increases
Government spending on social programmes continued to rise during the period. Montenegro allocated €661.3 million to social protection between January and July, €25 million more than a year earlier. Subsidies totalled €40.4 million, exceeding the planned amount by €13.9 million. Part of the expenditure was directed toward employment support for people with disabilities.
The combination of higher revenue collection, stronger social contribution receipts and increased capital expenditure supported the government’s fiscal position during the first seven months. A current spending surplus does not represent an overall fiscal surplus, however, once capital expenditure, financing requirements and other budget items are taken into account.
Tourism supports July revenue collection
Montenegro’s public finances remain sensitive to seasonal economic activity, particularly during the summer tourism period. Tourism contributes to VAT, excise, employment-related and other tax revenues.
The strong July collection therefore provided an early indication of continued fiscal revenue growth during the main tourism season. The composition of the revenue increase was also broad, with VAT, personal income tax, corporate tax, excise duties and social contributions all contributing to higher receipts. The increase in labour-related contributions reflected continued expansion of the formal employment and wage base. The first seven months of 2026 therefore combined €1.72 billion in budget revenue, an 8.7% year-on-year increase and €169.3 million in capital expenditure, with revenue collection remaining above government projections and investment spending accelerating.
